Do you need to send Form 1099s?

Do you have any Form 1099s to file?

 

Form 1099-MISC is the primary third-party notification for non-employee income.  If a business pays someone, who is not the business's employee, $600 or more forservices provided during the year, a Form 1099-MISC must be filed with the IRS by February 29, 2016 and a copy supplied to the recipient by February 1, 2016. Generally,  1099-MISC reporting is not required if the recipient is a corporation (except for attorneys), tax-exempt organization or government entity.

 

Common Types of Payments to be Reported:

 

1.  Contract Labor

2.  Professional Services to attorneys, accountants, financial advisers, etc.

3.  Rent

4.  Payments for Labor for Repairs

 

Why should you file? Penalties!

 

A payer who, without reasonable cause, fails to timely file a required information return is subject to penalties for each return

 

How will the IRS know if I am required to file?

 

There are questions on the tax returns for businesses (including sole-proprietors and rental schedules) which specifically ask if you had any payments subject to filing a Form 1099-MISC.

 

Click HERE for more information.

 

Contact our office today if you need assistance in filing the proper returns!